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Costco is facing a major legal challenge that has shoppers and industry insiders watching closely. The case involves one of the warehouse retailer’s most popular products and raises questions about labeling accuracy, product transparency and the integrity of private-label brands. Consumers are now asking whether one of their favorite Kirkland Signature products truly lives up to its advertised claims.
The lawsuit accuses Costco of falsely marketing its Kirkland Signature tequilas as “100% agave.” Plaintiffs claim laboratory testing revealed that the tequila contains cheaper, non-agave alcohols such as cane sugar. According to the complaint, this alleged misrepresentation affects the entire Kirkland tequila line and violates federal and state consumer protection laws. Costco’s tequila supplier, Santa Lucia Corporate Distillery of Mexico, is also named in the lawsuit. Plaintiffs allege that both companies knowingly participated in a scheme to profit from tequila that was falsely certified as pure agave.
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The complaint further claims that Costco had exclusive knowledge of the adulteration, yet continued to sell the tequila at a premium price. Marketing materials are described as misleading and likely to deceive a significant portion of consumers. The lawsuit cites multiple legal bases, including violations of federal racketeering laws and state consumer protection statutes in Washington and California. Plaintiffs argue that the retailer engaged in unfair or deceptive acts, misrepresenting the tequila’s quality, ingredients and origin to consumers nationwide.
Related: This Popular Athleticwear Brand Is Suing Costco—Here's Why
Potential Consequences for Consumers and the Retailer
The proposed class action seeks to represent all consumers who purchased Kirkland Signature tequila believing it was 100% agave. Plaintiffs are requesting compensatory and punitive damages, restitution and court orders requiring Costco to stop selling mislabeled products and correct its marketing practices. The lawsuit also emphasizes that individual claims would be costly and inefficient, making a nationwide class action the most practical method to hold the company accountable.
Costco has not yet responded to the allegations, leaving many customers unsure about the authenticity of one of its signature products. If the lawsuit succeeds, it could have far-reaching consequences for private-label spirits and influence how retailers label and market products in the future. Consumers who purchased Kirkland Signature tequila are advised to monitor developments in the case and stay informed about potential recalls, refunds, or corrective actions.
This case highlights the importance of transparency in product labeling and serves as a reminder that even trusted brands can face scrutiny when claims about quality and ingredients are questioned.
Related: Popular Car Seat Brand Hit With Class Action Lawsuit Over Recall Affecting More Than 324,000 Seats for This Dangerous Reason
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